WorksheetsDay 101-Jan 9-worksheet-Btech-Depreciation
Total questions: 15
Worksheet time: 12mins
Which method is used to calculate the depreciation when the salvage value is subtracted from the cost and divided by the expected life of the asset?
Constant percentage method
Straight line method
Sinking fund method
Declining balance method
For a concrete mixer purchased for Rs. 100,000 with a salvage value of Rs. 30,000 after 6 years, what is the annual depreciation calculated by the straight-line method?
(a)
What does the depreciation method of valuation require to be divided in parts?
Walls, floor, roof, doors & windows
Floor, ceiling, walls, doors
Roof, beams, columns, floors
Roof, doors, windows, flooring
In the Sinking fund method, which of the following is calculated each year?
Annual sinking fund
Total depreciation
Salvage value
Book value
What method of valuation is used when the property is in an undeveloped or partly developed stage?
(a)
True/False: The capitalized value is calculated by multiplying the net income with the years purchase in the profit method of valuation.
True
False
The depreciation rate for buildings older than 40 years is _____ %.
0.5%
1%
1.5%
2%
The rate of depreciation for a building with a life of 25 years is _____ %.
2%
3%
4%
5%
In the Depreciation method of valuation, the depreciated value is calculated using the formula _____.
D=P[(100−rd)/100]n
D=P(1−r)n
D=P−rn
D=P(1+r)n
In the profit-based valuation method, the capitalized value is equal to the product of the (a) and years purchase.
For a building with a life of 100 years, the depreciation rate is (a) %.
In the Development method of valuation, the anticipated capitalized value is obtained by multiplying the (a) by the years purchase.
The salvage value of a property is usually calculated as (a) % of the initial cost after the utility period.
A machine was purchased for Rs. 200,000 in the year 2000. The salvage value of the machine after 10 years is Rs. 40,000. Calculate the annual depreciation using the straight-line method.
(a)
A building was purchased for Rs. 500,000, and the annual depreciation rate is 5%. Calculate the annual depreciation and total depreciation after 5 years using the constant percentage method.
(a)
